if tds payable on commission(50000) is 5000/-,,,,what are the correct entry from below two entries
1.) commission a/c Dr 5000
to tds payable a/c Cr 5000
commission a/c Dr 45000
to party a/c Cr 45000
(or)
2.) commission a/c Dr 50000
to party a/c Cr 50000
party a/c Dr 5000
to tds payable a/c Cr 5000
2ND OPTION IS BETTER. FROM THIS YOU COULD KNOW WHAT AMOUNT OF TDS DEDUCTED ON WHICH PARTY
but expenditure related to direct cash payment. second option is not applicable.
YOU CAN PASS THESE ENTRIES IN SAME DAY IN CASE CASH TRANSACTION. BUT TRANSACTION CAN NOT BE MORE THAN 20000
both entries are correct but i would also recommend the 2nd approach or the single entry as suggested by bhumesh
2nd entry is correct or the single entry as suggested by Bhumesh.
2nd entry is correct 100%
If it is direct payment than entry will be..
Commission 50,000 Dr
To TDS payable 5,000 Cr
To Bank 45,000 Cr
Regards
Dayananda
2nd option are better
Comission A/c Dr. 50000
To Tds Payable 5000
To Party A/c 45000
Better option is:
Commission 50,000 Dr
To TDS payable 5,000 Cr
To Party A/c 45,000 Cr
2nd entry is correct...........
At the time of booking commission
Commission a/c dr______50000
To party A/C ________45000
To TDS A/c ___________5000
Payment to the party
party a/c dr._________45000
To Bank a/c ___________45000
Deposit of TDS
TDS a/c dr._________5000
To Bank a/c _______5000
Commission A/c Dr. 50000
To Party 45000
To TDS Payable 5000
As simple as that....
CAclubindia
